Navigating the Transition from RMS to RM

South Africa’s payment landscape is evolving, and businesses reliant on debit order collections must prepare for the shift from the Registered Mandate Service (RMS) to the Registered Mandate (RM) by 12 May 2025. This change, driven by the South African Reserve Bank (SARB) and Payments Association of South Africa (PASA), represents a modernization of the payment system and streamline collections, but it also introduces new challenges and opportunities for businesses.

Modernising the Payment Landscape

RMS has been the cornerstone of recurring payment collections for individuals, providing businesses with a mandate authentication process for debit orders; however, it has its limitations. The move from RMS to RM is part of South Africa’s broader strategy to align its payment systems with international standards with international best practices and ISO compliance standards. The phasing out of RMS is just the beginning – and EFT debits may soon follow suit. This modernisation aims to create a more efficient, secure, and standardised approach to debit order collections, ensuring businesses and consumers benefit from a more robust financial infrastructure.

Understanding RM Collections

The RM payment system introduces several key features designed to modernize the collections process:

Advantages
RM introduces several advantages that modernise South Africa’s payment system. One of its most significant benefits is greater flexibility in mandate initiation – unlike RMS, RM does not require a failed DebiCheck response before registration, allowing for faster, more efficient processing. RM also expands its applicability to juristic entities and multi-signatory accounts, making it particularly beneficial for business-to-business (B2B) transactions. Additionally, RM’s same-day processing capabilities provide businesses with quicker turnaround times when mandates are lodged on the action date.

Disadvantages
On the other hand, RM also brings certain challenges that businesses must prepare for. The shift to evening processing could impact the success rates of collections, especially for businesses that rely heavily on RMS debit orders. The late collection window, which takes place just before EFT debits, means RM collections are second in priority to DebiCheck, and full dispute rights are given to the payer, increasing the risk of unsuccessful transactions. RM’s tracking window is limited to 12 hours (12 PM to 12 AM) compared to RMS’s and DebiCheck’s 24-hour tracking, further impacting collection efficiency.

Why DebiCheck Should Be Your First Choice

Despite RM’s flexibility, DebiCheck continues to offer the most secure and reliable solution for debit order collections. Unlike RM, DebiCheck collections are prioritised in the early morning window, giving them first access to funds. They also benefit from 24-hour tracking, ensuring higher success rates and faster, more predictable cash flow. DebiCheck’s robust customer authentication process also reduces the risk of payment disputes, as every transaction is pre-approved by the payer. This additional layer of security not only enhances trust between businesses and their clients but also ensures that collections are processed with minimal friction and maximum efficiency. By using DebiCheck, businesses can significantly improve collection efficiency and long-term reliability. For businesses looking to optimise their DebiCheck success rates, several strategies can be implemented.

Enhancing Authentication with TT3 BitventurePay

There are a few different DebiCheck strategies that businesses can integrate into their business for collection success. Batch SMS notifications can be used to inform customers about pending TT2 DebiCheck Mandates – though this method typically results in lower success rates. Businesses can also use real-time TT2 DebiCheck Mandates over the phone, guiding customers through the authentication process while they are on a call. However, the highest success rates (as high as 99%) can be achieved by using in-person TT3 Mandate authentication via BitventurePay devices, where customers authenticate their mandates on-site with their bank card.

For businesses offering in-person services, TT3 BitventurePay devices provide an excellent solution for real-time, face-to-face mandate authentication. Customers can authenticate mandates on the spot with a simple tap, ensuring immediate approval and minimising potential issues. The success rates speak for themselves: TT3 BitventurePay is the best authentication option, with only 1.3% facing challenges, most of which are related to debtor behaviour or technical issues.

You Don’t Have to Navigate This Transition Alone

Transitioning from RMS to RM — and maximising the benefits of DebiCheck — requires careful planning and implementation. But this is not a journey you have to take alone. Bitventure is here to support your business every step of the way. From training your team on mandate authentication to optimising your collection processes and deploying cutting-edge tools like TT3 BitventurePay, we offer end-to-end solutions to ensure your business remains compliant, efficient, and ready for the future.

The 12 May 2025 deadline is fast approaching — don’t wait until the last minute to prepare. By acting now, your business can minimize disruptions and position yourself for success in the new environment. This is not just a regulatory shift; it’s a chance to enhance operations, strengthen collections, and gain a competitive edge.